VSC Safe-Drive Vehicle Service Contract EXPECT THE UNEXPECTED. Dealer Procedure Manual & Program Guidelines
Contents Introduction...2 Directory of Important Contact Numbers...2 Business Hours...2 Website Login...2 SECTION 1. SERVICE CONTRACT ISSUANCE...3 Preparing the Service Contract Registration Page...3 Completing the Information Schedule...3 Vehicle Service Contract Example...3 Missing/Incorrect Information Schedule Items...3 Warning...4 Effective Date...4 Disclosure...4 Distribution of Service Contract Copies...4 Available Coverage Plans...5 Additional Coverage...5 Commercial Use...5 SECTION 2. INELIGIBLE SERVICE CONTRACTS...6 Ineligibility...6 Re-Submissions & Re-Writes...6 Cancellation of Ineligible Service Contracts by Dealer...6 Ineligible Service Contract Notice Sample...7 SECTION 3. REMITTANCE: REPORTING & BILLING...8 Manual Remittance Using the Remittance Register...8 Procedures for Filling Out the Remittance Register...8 Remittance Register Example...9 Electronic Rating...9 Electronic Remittance...10 E-Contracting Set-Up Procedures...10 Service Contracts Returned Due to Ineligibility...10 Service Contracts Processed with Shortages...10 SECTION 4. CANCELLATIONS...11 Documentation Required...11 Cancellation Request Form Example...11 SECTION 5. TRANSFERS...12 Transfer Procedures...12 Transfer Request Form Example...12 SECTION 6. CLAIMS AUTHORIZATION & REPORTING..13 Claim Tracking Number...13 Steps to Follow When Filing a Claim...13 Authorization Checklist...14 Independent Inspections...15 Supplemental Authorization...15 SECTION 7. CLAIMS REIMBURSEMENT GUIDELINES..16 Labor...16 Parts...16 Deductible...16 Rental...16 Towing & Roadside Assistance...17 Emergency Travel Expense Reimbursement...17 Sales Tax...17 Shop Supplies...17 Environmental Fees...17 SECTION 8. SUBMITTING CLAIMS...18 Documentation Required...18 Claim Mailing Instructions...18 Claim Faxing Instructions...18 Bar Code Fax Cover Sheet Sample...19 SECTION 9. PAYMENT OF CLAIMS...20 Determination of Reimbursed Party...20 Payment Processing...20 Discrepancy in Reimbursement Amount...20 Credit Card Reimbursement...20 Payment to Client Repair Facility...20 Payment to Customer or Non-Client Repair Facility...21 SECTION 10. DENIALS, ADJUSTMENTS & RETURNS FOR INCOMPLETE DOCUMENTATION...21 Denials & Adjustments...21 Returns for Incomplete Documentation...21 1
Introduction This manual provides the information and guidelines necessary to properly sell and process Safe-Guard Vehicle Service Contracts. By executing the Administrative Agreement, you are bound to follow the most current version of this manual. Please refer to the specific Vehicle Service Contract, your Administrative Agreement, Rate Schedule, Vehicle Classification Guide and Vehicle Eligibility Requirements for specific information relating to the program. Directory of Important Contact Numbers Claims Reporting and Customer Service: 800-949-5680 Repair Order Fax: 678-892-3232 or vscpaymentfax@sgintl.com Emergency Roadside Assistance: 866-927-0354 Cancellations: 800-742-7896 prompt 3 Cancellations Fax: 678-553-1374 Shipping: 800-742-7896 prompt 4 Billing and Account Information: 800-742-7896 prompt 5 Sales and Client Relations: 866-541-0088 Client Relations Fax: 678-553-1356 General Inquiries: 866-541-0088 Business Hours Claims: General Inquiries: 8:30 AM. 8:00 PM (Eastern Time), Monday - Friday 9:00 AM 5:00 PM (Eastern Time), Saturday 8:30 AM 5:30 PM (Eastern Time), Monday - Friday Website Login The Safe-Guard Website, www.safe-guardproducts.com, will allow you to download forms, check rates, generate Vehicle Service Contracts, access the Procedure Manual & Program Guidelines, and perform contract and claim status inquiries. Log in to the website by entering your User Name and Password. If you do not have this information, contact a Safe-Guard Client Relations Representative at 866-541-0088. 2
SECTION 1. SERVICE CONTRACT ISSUANCE Please contact a Safe-Guard Client Relations Associate at 866-541-0088 to answer any questions relating to vehicle eligibility, rates or completing the Information Schedule of the Vehicle Service Contract. PREPARING THE SERVICE CONTRACT REGISTRATION PAGE 1. Refer to the Safe-Drive Eligibility Requirements for guidelines. 2. Fill out the Information Schedule completely and accurately. 3. Ensure that the Service Contract is signed by the customer and the dealer representative. COMPLETING THE INFORMATION SCHEDULE The Information Schedule of the Service Contract must be completed fully and accurately. Incomplete or incorrect information may delay the processing or result in the possible rejection of a contract. MISSING/INCORRECT ON THE SERVICE CONTRACT INFORMATION SCHEDULE If the Service Contract is returned to the dealer due to missing or incorrect information, the contract must be corrected and re-submitted to Safe-Guard within 15 days. The following are examples that would cause a delay in processing and/or result in the return of the service contract to the dealer. Missing customer signature Incorrect Vehicle Identification Number Additional Months and/or Miles is missing Incorrect odometer reading Ineligible term or program is selected Information is ineligible Vehicle model name is missing If the Coverage Plan or Deductible option is not specified, the coverage will revert to the default options as specified within the language of the Service Contract, and will be priced accordingly. Safe-Drive Vehicle Service Contract Registration Service Provider/Administrator: Safe-Guard Products International, LLC Two Concourse Parkway, Suite 500, Atlanta, GA 30328 Toll free: 1-800-949-5680 FOR EMERGENCY ROADSIDE ASSISTANCE: TOLL-FREE 1-877-221-2399 1. COVERED VEHICLE VIN INFORMATION SCHEDULE SERVICE CONTRACT REGISTRATION NO. Original In-Service Date Make Model Year Current Odometer Reading Vehicle Code Vehicle Class Vehicle Purchase Price Check all that apply: $ Diesel 4x4/AWD Turbo/Supercharged 2. CUSTOMER Name Phone E-mail Street City State ZIP 3. SELLING DEALER Dealer Number Name Phone E-mail Street City State ZIP 4. LIENHOLDER I, the undersigned holder of this Service Contract, hereby authorize the following Lienholder: 1. To receive any refund for credit to my account in the event this Service Contract is canceled; and 2. To cancel the Service Contract in the event I default in my obligation to such Lienholder. Lienholder Name Lienholder Address 5. COVERAGE PLAN If no Coverage Plan has been checked, Silver Coverage Plan will apply. Optional Commercial Use. Permitted commercial Platinum Gold Silver Power Train purposes only (See Key Terms). Emergency Travel Expense, Rental Reimbursement and Emergency Roadside Assistance apply to all Coverage Plans. 6. SERVICE CONTRACT TERM This Service Contract begins on the Service Contract Purchase Date (See Key Terms) and at the Current Odometer Reading stated in Section 1 of the Information Schedule. This Service Contract ends when the Months indicated below from the Service Contract Purchase Date is reached or when the additional Miles indicated below are registered on the odometer, whichever occurs first. Service Contract Months from Service Additional Service Contract Purchase Date Contract Purchase Date Miles Purchase Price $ 7. DEDUCTIBLE If no Deductible box has been checked, the $250 Per Visit Deductible will apply. $250 Per Visit Deductible $100 Per Visit Deductible WASHINGTON RESIDENTS ONLY: I acknowledge that I have read, understand and agree to the terms and conditions of this Service Contract, including, but not limited to: A. Requirements for maintaining Your Vehicle and retaining maintenance records under Section IV. Maintenance Requirements. B. Procedures required to file a claim under Section VI. Your Responsibilities. C. Parts covered under Section II. What This Service Contract Covers. D. Your Months and Miles limit shown in Section 6 on the Information Schedule. E. The Implied Warranty of Merchantability on the Vehicle shown in VIII. State Amendments: Washington is not waived if the Service Contract has been 1. I agree to purchase this Mechanical Repair Service Contract (Service Contract) covering the Vehicle described on this Registration Page, which must meet Our underwriting guidelines and is subject to acceptance by the Administrator. I agree that the time and mileage limits indicated on this Registration Page begin to run from the Service Contract Purchase Date, even though any components or parts covered by a manufacturer, supplier, or other Warranty are NOT covered by my Service Contract until expiration of the manufacturer, supplier, or other Warranty. I understand that my Service Contract term includes any periods of applicable manufacturers warranties. 2. The Service Contract runs concurrent with, and is secondary to, any applicable manufacturer s Warranty. 3. If the manufacturer s Warranty has been declared void, the Service Contract does not cover the Vehicle until the end of what would have been the manufacturer s Warranty. 4. The benefits provided under Dealer Warranties required by state law are not covered by the Service Contract. CUSTOMER ACKNOWLEDGEMENTS purchased within ninety (90) days of the purchase date of the Vehicle from the Selling Dealer who also sold the Vehicle covered by this Service Contract. F. Exclusions of coverage under Section III. Exclusions. G. Cancellation provisions and conditions under Section VII. General Provisions, item #9. How This Service Contract May Be Canceled. H. Benefits may be transferred when eligible to an individual who purchases this Vehicle. Please refer to Section VII. General Provisions, item #8. How This Service Contract May Be Transferred. Customer Initials Date 5. I understand that my Service Contract has been issued in accordance with the information contained on this Registration Page and is subject to the terms and conditions stated in the Service Contract, which I have read and received with this Registration Page. 6. I understand that prior authorization by the Administrator is required on repairs covered by this Service Contract. (Call 800-949-5680 for claims authorization.) I further understand that any Breakdown, loss, or damage that results from a preexisting condition is not covered by this Service Contract. 7. I understand the purchase of this Service Contract is not required to purchase or obtain financing of my Vehicle. 8. The Service Contract Price may be financed with the purchase of this Vehicle. Other payment options may be available. 9. I agree to follow the maintenance procedures listed in Service Contract Section IV. Maintenance Requirements. 10. This Service Contract is not a contract of insurance. Customer Signature Dealer Representative Signature SGVVSC Rev 10/12 LZX 94159 ADMINISTRATOR COPY 3
WARNING No dealer, dealer representative or Safe-Guard representative has the authority to alter the Service Contract or to waive any of the Service Contract s provisions. EFFECTIVE DATE Refer to the Service Contract that you are authorized to sell. One or more of the following definitions will apply: Service Contract Purchase Date, Contract Date, or Coverage Effective Date: The date the Service Contract was purchased. In-Service Date: The earlier of the date the vehicle was sold to the first retail customer or the date it is first put into use. This date will determine the effective date of the manufacturer s warranty. DISCLOSURE Disclosure serves everyone s best interest by ensuring that the customer understands the Service Contract terms, exclusions, limitations and customer responsibilities. When these are understood, the incidence of proper claims authorization is greatly increased, and customer satisfaction is maximized. Prior to obtaining the customer s signature, the dealer representative should affirm the following: 1. Coverage Plan, Service Contract Term and Deductible 2. Coverage Effective Date 3. Service Contract Purchase Price 4. Requirement to obtain authorization before proceeding with repairs 5. Requirement that maintenance must be performed by a licensed facility 6. Requirement for the customer to retain maintenance receipts 7. Responsibility of the customer to ensure that gauges and warning lights are operating 8. Responsibility of the customer to prevent further damage after a breakdown has occurred 9. Customer must read the Service Contract 10. Customer has the right to cancel the Service Contract 11. Service Contract governs coverage, exclusions and limitations DISTRIBUTION OF SERVICE CONTRACT COPIES Administrator Copy Dealer Copy Lienholder Copy Customer Copy Submit to Safe-Guard Products International, LLC Retain with Customer File Submit with Finance Contract to Lending Institution Provided to Customer at Time of Purchase This is an Add-On Time and Miles Service Contract. The coverage period begins on the Contract Purchase Date and with the current odometer reading. The coverage term ends when term months beyond the purchase date or miles added to the odometer are reached. This form is used for both new and used vehicles. 4
This is an Add-On Time and Miles Service Contract. The coverage period begins on the Contract Purchase Date and with the current odometer reading. The coverage term ends when term months beyond the purchase date or miles added to the odometer are reached. This form is used for both new and used vehicles. AVAILABLE COVERAGE PLANS Various plans offered by Safe-Guard are listed below. Please refer to the actual Vehicle Service Contract for details: Platinum (Exclusionary Coverage) Covers all components and parts except those listed in EXCLUSIONS (Section III of the Vehicle Service Contract). Gold Covers items specifically listed under Gold, Silver and Power Train Coverage (includes Items 1-11 on section II A. of the Vehicle Service Contract), subject to EXCLUSIONS (Section III of the Vehicle Service Contract). Silver Covers items specifically listed under Silver and Power Train Coverage (includes Items 1-10 on section II of the Vehicle Service Contract), subject to EXCLUSIONS (Section III of the Vehicle Service Contract). Power Train Covers items specifically listed under Power Train Coverage (includes Items 1-4 on section II of the Vehicle Service Contract), subject to EXCLUSIONS (Section III of the Vehicle Service Contract). ADDITIONAL COVERAGE Platinum, Gold, Silver and Power Train plans all receive additional coverage including Rental Reimbursement, Emergency Roadside Assistance (not available in Kentucky) and Emergency Travel Expense Reimbursement (not available in Kentucky, New York and Texas) as described in Section II of the Vehicle Service Contract. COMMERCIAL USE Optional Commercial Use is available for Permitted Commercial Purposes only, as defined under Section I of the Vehicle Service Contract. 5
SECTION 2. INELIGIBLE SERVICE CONTRACTS INELIGIBILITY Submitted Service Contracts that do not meet the current Eligibility Requirements will be returned to the issuing dealership. A Service Contract that has been deemed ineligible may not be corrected and resubmitted. It must be replaced by a newly written Service Contract, completed per the Eligibility Requirements and signed by the customer; or the Service Contract must be surrendered and a refund for the Service Contract Purchase Price must be refunded to the customer (or to the lienholder if the Service Contract was financed). If a Service Contract is to be replaced with a new version, the original Customer Copy of the ineligible Service Contract must be surrendered by the customer and submitted with the new Service Contract. Additionally, you must make the following notation on the original, ineligible Service Contract, and ask the customer to sign the notation as evidence that he/she has been notified of the coverage change: This Contract Replaced by Service Contract # Safe-Guard will notify you immediately when a Service Contract is deemed ineligible via the Contract Return Letter. The Notification will alert you to the issue and: Outline your options for correcting the problem and notifying the customer. 3500 Piedmont Road NE Inform you that Safe-Guard will cancel Suite 400 Atlanta, GA 30305 the customer s Service Contract under 800-742-7896 404-816-3221 Fax: 678-420-9061 the right to cancel. 06/15/2010 RE-SUBMISSIONS & RE-WRITES All Service Contract re-submissions or re-writes must be remitted to Safe-Guard within 15 days of the original return notice. CANCELLATION OF INELIGIBLE SERVICE CONTRACTS Any customer holding a purchased Service Contract is entitled to the coverage outlined therein until notified otherwise, and until a replacement Service Contract is provided or a full refund is made to either the customer or the lienholder. If the Service Contract is deemed ineligible, and no coverage is available for the customer per the eligibility requirements, the contract must be cancelled and the customer must be promptly notified by the dealer. If the dealership elects to cancel the Service Contract or deems cancellation necessary, the customer must be notified in writing and the full Service Contract Purchase Price must be refunded to the customer or the lienholder. Communication and refunds should be sent via registered or certified mail in order to obtain proof of delivery. JOHN SMITH CHEVROLET ATTN: FINANCE NCE DEPARTMENT 555 ANY STATE TE RD. ALPHARETTA, A, GA 30022 RE: Safe-Guard contracts to be returned / Reference # 00123456 Safe-Guard Products is unable to process the enclosed customer contract(s), as detailed in the explanation provided below. Enclosed you will find the ineligible contract as well as a check for the amount remitted by your dealership for this contract. Agt # Contract # Dealer # Customer Sale Date Form Dlr. Rem. 00012300123 0008240987 00S123450 RICHARD SMITH 05/01/2010 SGVSC S $1450.00 00 After several eral attempts to contact you, we have been unable to obtain missing information required by the underwriter (Ex: MSRP, term, odometer reading, etc.) The Odometer Reading, the MSRP, or the Term is too high to qualify for this program. The contract is a duplicate of an active contract for this customer. There is not enough time/miles remaining ng on factory warranty. The model year is above the maximum allowed for the program. The term is above the maximum for the coverage selected. The Customer Contract was written on a form that is no longer valid. * The Customer Contract was written on a form that is not valid for the type of vehicle purchased.* The Customer Contract was not written on the State-Specific ic form required for this product in your state. * We have not yet received your State License or the Underwriter Appointment t Application required by your dealership prior to selling this product. IMPORTANT: You must resubmit the Customer Contract along with your License and Underwriter Appointment t Application withini 10 days of receiving this notice, otherwise Safe-Guard is required to notify the customer that they do not have coverage. Please contact our Legal/Compliance Department t at 1-800-742-7896x9088 88 for assistance with submitting these documents. Contract t sales date is more than 90 days old. Your dealership may be able to resubmit the policy by completing, signing and returning the enclosed Late Remittance Agreement and applicable $75 late fee per policy. Your failure to resubmit the policy with the requirements mentioned ned above may expose the dealership to additional liability as set forth below. Other: * You may be able to rewrite the contract on a current form and attach the enclosed contract as evidence of Signature on File l.. Please contact your Safe-Guard Representative in order to determine if this is an option for you. If fy you choose this option, you must provide a copy of the re-written contract to your customer in order to avoid potential exposure to liability in the future. Please be aware that the referenced customer(s) will not be eligible for product coverage until the correct form and payment are received. Also, please note that if the obsolete form on which the original contract was written provided benefits above and beyond those provided by the correct form to which it was re-written, ritten, the dealership will be responsible for the difference. ference. All claims will be adjudicated according to the terms of the correct form, and the dealer will be invoiced for any additional funds owed to the customer. If you have any questions or concerns, please do not hesitate to contact Safe-Guard a at your convenience. Sincerely, Charlitrice Bridges, ext. 9082 Katrina a Milton, ext. 9085 Underwriting/Quality Control Underwriting/Quality Control 6
Additionally, the Service Contract s terms provide protection for your dealership by permitting the Safe-Guard to cancel the Service Contract at any time: If there has been a material misrepresentation or fraud. If the customer fails to maintain the vehicle as prescribed by the manufacturer. If the odometer has been tampered with or disabled, and the customer has failed to repair the odometer. If the customer does not pay the Service Contract Purchase Price. If the vehicle has a salvage title. If the customer uses the vehicle in any manner not covered by the Service Contract. See the Cancellations section of this guide for complete instructions. INELIGIBLE SERVICE CONTRACT NOTICE SAMPLE CERTIFIED MAIL Date Customer Name Street Address City, State, ZIP DEALERSHIP LETTERHEAD Street Address City, State, ZIP Telephone Number RE: Service Contract # Dear Customer, We have been informed by Safe-Guard Products International, LLC that our dealership has issued a Vehicle Service Contract on your vehicle that does not meet eligibility requirements. Therefore, we are canceling the Service Contract under Section VII, Number 9 of your Safe-Drive Vehicle Service Contract Registration. Attached is a check representing a full refund of the Service Contract Purchase Price. We have refunded the entire Service Contract Purchase Price to the Lienholder who financed your Service Contract. Please accept our apology for this error. Sincerely, Name Title 7
SECTION 3. REMITTANCE: REPORTING & BILLING Dealers may choose to remit via mail or electronically through the E-Contracting system. Dealers must submit all Service Contract Registrations to the plan administrator within 15 days after the end of the month in which they were sold. Weekly submission is recommended to reduce the potential for disruption in the event of a claim. Safe-Guard reserves the right to decline acceptance of any registration not submitted in a timely manner (more than 45 days after date of Registration). All program forms will be mailed to the customer s address as shown on the Registration Page. MANUAL REMITTANCE USING THE REMITTANCE REGISTER A Remittance Register is a month-end document that summarizes the Service Contracts sold for the previous month. It is necessary to prepare the Remittance Register to accompany manual Registrations. The form must be attached to all Registrations sold or voided during the reporting period. PROCEDURES FOR FILLING OUT & SUBMITTING THE REMITTANCE REGISTER 1. Enter complete seller information. 2. Enter the date the Service Contract was sold. 3. Enter the purchaser s first and last name. 4. Enter the initials of the personnel who sold the Service Contract. 5. If a cancellation, enter the cancellation amount in the Cancel column. 6. Indicate type of coverage purchased. 7. Enter the coverage cost. 8. Enter the surcharges. 9. Enter the total due. 10. Total the remittance amounts being reported. 11. Subtract out the total cancellation amount. 12. Prepare a check payable to Safe-Guard Products International, LLC in the amount of the total remittance. 13. Mail the completed original Remittance Register, check and appropriate Registration or Cancellation Form copies to: Plan Administrator Safe-Guard Products International, LLC Two Concourse Parkway, Suite 500 Atlanta, GA 30328 8
REMITTANCE REGISTER EXAMPLE Mail to: Safe-Guard Products International, LLC 3500 Piedmont Road NE, Suite 400 Atlanta, GA 30305 800-742-7896 Safe-Drive VSC Remittance Register Seller Date Address Seller Account # City State ZIP Prepared by Phone Page of No. Date Sold Purchaser Seller Personnel Type of Coverage Coverage Cost Total Due Initials 1 $ $ 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Totals $ $ Attach check(s), cancellation(s) and applications to REMITTANCE REGISTER Make Checks Payable to: Safe-Guard Products International, LLC Issue in $ Net Due in $ Check # SGVSCRR Rev 8/10 ELECTRONIC RATING In order to obtain the dealer rate for a Service Contract, the dealer should log into the Safe-Guard website at www.safeguardproducts.com using the assigned User Name and Password, then select E- Rate Dealer cost from the E-Contracting drop down menu. After entering the VIN number and current odometer, the dealer will be provided with a list of Service Contract program options for that particular vehicle, along with the corresponding costs. 9
ELECTRONIC REMITTANCE Dealers may choose to remit Service Contracts electronically using Safe-Guard s interactive E-Contracting tool available at www.safe-guardproducts.com. This method of remittance allows the dealership to enter customer data into an online Registration screen and then remit those Registrations electronically to Safe-Guard. The dealer mails a check to Safe-Guard equal to the remittance amount due, along with a copy of the pre-populated Remittance Register provided by the website. E-Contracting eliminates the need for physical Registration Forms in the F&I Office and most importantly, greatly reduces the possibility for remittance errors. E-CONTRACTING SET-UP PROCEDURES 1. An E-Contracting application may be accessed from the Safe-Guard website, completed and directly e-mailed to the Client Relations Team for processing. 2. Dealers may choose to interface with DMS systems so that customer information is pre-populated into the Registration Page. This interface is facilitated by Superior Integrated Solutions. A Third Party Work Agreement must be signed with this company in order to initiate that process. 3. Once the E-Contracting Application and Third Party Work Agreement (when applicable) is received and confirmed as complete, Safe-Guard will activate the E-Contracting User Interface for the dealer. This process takes approximately 5 business days. If the dealership chooses to use the DMS Interface option, the setup process could take slightly longer (usually 2 weeks), as Superior Integrated Solutions must work directly with technology personnel at the dealership to complete and test the interface. 4. Once the E-Contracting setup process is complete, a member of the Safe-Guard Client Relations Team will create a website username and password for the dealership and will notify the representative that the dealer is ready to begin E-Contracting. 5. Dealer personnel who will be utilizing the E-Contracting system are highly encouraged to view the E-Contracting Demo on the Safe-Guard website in order to familiarize themselves with the E-Contracting process. SERVICE CONTRACTS RETURNED DUE TO INELIGIBILITY Service Contracts submitted that are ineligible for coverage (i.e., vehicle exceeds the time or mileage limitations for the plan or term) will be returned along with a refund of the charge remitted. SERVICE CONTRACTS PROCESSED WITH SHORTAGES In order to provide the best possible service for your office staff and timely claim benefits for your customers, Service Contracts that are received with shortages will be processed, and you will be notified and billed accordingly. 10
SECTION 4. CANCELLATIONS Cancellations may be made by the administrator, the customer and the lienholder. The rules for cancellation vary by state. Refer to the Section VII.9 of the Service Contract plus any applicable State Amendments in Section VIII. If the Service Contract is canceled within 60 days of the Service Contract Purchase Date and a claim has not been incurred, a 100 percent refund of the Service Contract Purchase Price will be made. After 60 days or if the customer has incurred a claim, a pro-rata refund of the unused Months or unused Miles will be made. The pro-rata refund will be calculated by multiplying the Service Contract Purchase Price by the lesser percentage of the unused Months or unused Miles compared to the total Months or total Miles of the Service Contract Term, less an administrative fee of $50. All refunds will be paid to the lienholder if any, otherwise to the customer. If the Service Contract is canceled by the administrator, the cancellation period of 60 days is changed to 90 days. Please see additional state-specific cancellation provisions outlined in Section VIII of the Service Contract. DOCUMENTATION REQUIRED Safe-Guard requires a Cancellation Form signed by the customer and the Notarized Odometer Statement. The dealer must obtain the customer s signature in order to cancel a Service Contract. Cancellation Requests received without a signature will not be processed. Upon receipt of the Vehicle Service Contract Cancellation Form, the plan administrator will calculate the refund according to the terms and conditions of the Vehicle Service Contract and forward the refund to the dealer. The details of the refund portion to be paid by the dealer will accompany the administrator s check. The dealer will add its portion of the refund to accompany the administrator s check, and make a check payable to the customer or to the Service Contract finance source. CANCELLATION REQUEST FORM EXAMPLE Contract Number Customer Current Address ALL INFORMATION MUST BE PROVIDED IN ORDER FOR US TO PROCESS YOUR CANCELLATION REQUEST. Today s Date City State ZIP Vehicle VIN Vehicle Year Vehicle Make Vehicle Model Cancellation Date Cancellation Mileage ATTACH NOTARIZED ODOMETER STATEMENT INDICATING THE MILEAGE OF THE VEHICLE AT TIME OF CANCELLATION. REASON FOR CANCELLATION: Two Concourse Parkway, Suite 500 Atlanta, GA 30328 FAX: 678-553-1374 CUSTOMER REQUEST VEHICLE SALE OR TRADE-IN Safe-Drive VSC Cancellation Request LENDER REQUEST (Vehicle total loss or repossession attach copy of insurance report or repo letter.) I understand that all refunds for cancellations will be determined by the provisions in the service contract issued to me. Refunds due will be paid by the seller of the service contract. Customer Signature Date Authorized Signature of Sales Representative Contract Purchased from Mail or FAX to: Safe-Guard VSC Plan Administrator Two Concourse Parkway, Suite 500 Atlanta, GA 30328 FAX: 678-553-1374 SGVSCCF Rev 8/10 11
SECTION 5. TRANSFERS Service Contracts are eligible for transfer between private parties for any coverage remaining within the time and mileage plan originally selected, one time only. The only exception would be in the event of the customer s death when coverage remains in force and is available to the customer s estate. The Transfer option is not available if customer sells or trades the vehicle to an automobile dealer or if the vehicle is repossessed. TRANSFER PROCEDURES 1. Obtain Transfer Application from Safe-Guard. 2. Transfer remaining manufacturer s warranty to the new owner (proof may be required). 3. New owner presents proof of the date the vehicle was purchased (i.e., canceled check, finance contract). 4. Complete and sign Transfer Application and pay a $50 Transfer Fee to Safe-Guard. 5. Transfer Application must be received within 30 days from the date of sale. 6. New vehicle owner is responsible for obtaining all vehicle maintenance records. 7. Coverage does not apply to subsequent owners until the transfer has been approved by Safe-Guard. Remember, when a vehicle is sold or transferred to another party, the coverage is no longer valid unless a transfer is applied for and accepted. In a case where a claim is submitted and the name of the owner does not match the name in the records, Safe-Guard will deny coverage. 8. Upon receipt of the Transfer Fee and a completed Transfer Request Form, Safe-Guard will update its records to reflect the name and address of the new customer. 9. The Transfer Request Form, along with the original customer copy of the Service Contract, is the new owner s proof of coverage. TRANSFER REQUEST FORM EXAMPLE Contract Number VIN Date of Transfer/Sale Vehicle Year Vehicle Make Vehicle Model Odometer Mileage Original Contract Holder (Transferor) Address City, State, ZIP Telephone Two Concourse Parkway, Suite 500 Atlanta, GA 30328 FAX: 678-553-1374 NOTICE TO TRANSFEROR: You must enclose: 1. $50 Transfer Check 2. Proof that manufacturer s warranty has been transferred to the transferee (if applicable) I hereby certify that the above described vehicle has been maintained in accordance with the manufacturer s recommendations, and that I have sold this vehicle directly to the transferee identified above. Vehicle Purchaser (Transferee) Address City, State, ZIP Telephone Safe-Drive VSC Transfer Application NOTICE TO TRANSFEREE: This is an application to transfer the coverage remaining under the Service Contract. The transfer is not effective until we have accepted the transfer by written confirmation to you at the address shown above. If we accept the transfer, you will be considered the Contract Owner for all purposes. As a condition of the transfer, you understand and agree that the Service Contract excludes coverage for breakdowns that are, or would have been, covered under the vehicle manufacturer s warranty. Some manufacturers reduce the benefits and/or the term of their warranty to subsequent vehicle purchasers. Even if the manufacturer s warranty is reduced, restricted or eliminated, there will be no coverage available to you for those components covered under the original manufacturer s warranty for the original warranty term. Additionally, you understand that it is your responsibility to obtain any and all maintenance records for this vehicle. You are responsible for ensuring that all of the vehicle manufacturer s recommended maintenance has been performed and records of such maintenance are available. In the event that a mechanical breakdown occurs to a component requiring regular maintenance per the manufacturer, you will be asked to provide proof that such maintenance has been performed. In the event that you are unable to provide the required records, your claim may be denied. Transferor Signature Date Transferee Signature Date NOTE: Completed and signed Transfer Application must be received by Administrator within 30 days of the vehicle transfer. SGVSCTA Rev 8/10 12
SECTION 6. CLAIMS AUTHORIZATION & REPORTING All client dealerships and repair facilities are required to obtain Repair Authorization from Safe-Guard prior to performing any covered repairs. In order to provide the best possible service, all phone calls to the Claims Department are recorded. CLAIM TRACKING NUMBER Each claim is assigned a unique Claim Tracking Number. This is not authorization that your claim will be paid. The Claim Tracking Number is used only for identification purposes. Once the required documents have been received and verified, the claim will be approved and paid. Any claim submitted by a customer, where authorization was not obtained prior to the repair being performed, will be denied unless accompanied by documentation that explains an acceptable reason for not obtaining authorization (i.e., emergency repairs, after hours repairs). Customers reporting an unauthorized repair to your dealership should be instructed to call Safe-Guard for instructions at 800-949-5680. Claims not reported and submitted within 30 days of the repair order date are not eligible for coverage. STEPS TO FOLLOW WHEN FILING A CLAIM 1. Obtain a copy of the customer s Contract Registration. 2. Advise the customer that he/she is responsible for any work not covered by the contract. This includes the cost of tear-down* necessary to diagnose the condition/concern, if it is determined that the breakdown/claim is not covered. 3. Diagnose the concern(s) to determine the cause of the failure(s), the extent of damage and the estimated cost of repair (customer complaint, cause, correction and estimate see checklist below). 4. Call the Claims Department at 800-949-5680 and explain the nature of the situation to the claims adjuster. 5. The claims adjuster will verify coverage do one of the following: a. Approve the claim by issuing a Claim Tracking Number. Record this tracking number, authorized amount b the adjuster s name on the Repair Order. b. Request further evaluation by tear-down* or independent inspector. c. Ask you to assist in locating alternative parts. d. Deny the claim (if not covered by the terms and conditions of the Service Contract). 6. Contact the Claims Department prior to any disassembly related to transmission drivability breakdowns. 7. Do not discard parts and filters until you have received the claim decision. * Safe-Guard may request that a component be torn down before issuing a Tracking Number. Please advise the customer that he/she is responsible for authorizing the diagnosis/tear-down of the vehicle pending determination of a covered breakdown. The customer is responsible for paying the tear-down, reassembly and/or subsequent repair charges if it is determined that the failure is not covered. If the failure is covered, the contract will be responsible for the required disassembly. 13
AUTHORIZATION CHECKLIST Contract Number or Last 7 Characters of VIN Customer Name Year, Make, Model Breakdown Date Repair Order Number Dealership Name Dealership Phone Number Service Writer s (Caller s) Name Payee s Name Odometer Reading Vehicle Driven/Towed in Customer Complaint(s) Technical Diagnosis of Breakdown (Cause) Repair Operation to be Performed (Correction) Price of Parts Part Numbers (if required by prior Contract with your dealership) Source of Parts Any Repair Alternatives (that could reduce claim cost) Labor Time Labor Operation Codes (if factory time applies) Labor Reference (to verify reference on file) Labor Rate (to verify amount on file) Repairer s Guarantee (for this particular repair) Tax Rate in Locality Tax Basis (Parts Only, Parts and Labor, Labor Only, None, Exempt) Towing Amount Requested (if applicable) Rental Days Requested (if applicable) 14
INDEPENDENT INSPECTIONS In some cases, an independent inspection may be required prior to any repairs. Always follow the below guidelines in the event an inspection is deemed necessary. 1. Save all components; do not clean them. 2. Be prepared to demonstrate failure and validate your diagnosis. 3. The claims adjuster will arrange for an inspection and advise you of the timeframe. 4. Call the Claims Department for assistance if the inspector does not arrive within 24 hours. 5. Do not perform repairs before the inspection is performed and authorization has been issued. SUPPLEMENTAL AUTHORIZATION Unexpected additional expenses may be incurred during the performance of normal repairs. Safe-Guard recognizes that these complications may create additional costs in excess of the original Authorized Repair Amount. It is required that you obtain Supplemental Authorization for any additional repairs. Failure to comply with this procedure will limit the payment of your claim to the amount originally authorized. When calling for Supplemental Authorization, reference the original Claim Tracking Number and note the claim adjuster s name. 15
SECTION 7. CLAIMS REIMBURSEMENT GUIDELINES Claim reimbursement can be facilitated by check or corporate credit card. Safe-Guard authorizes claims allowing for reasonable and customary charges for parts and labor necessary to repair or replace the covered breakdown. These charges shall not exceed the manufacturer s suggested retail price (MSRP) for parts and labor allowances derived from a nationally-recognized Labor Time Guide (LTG) publication at the posted Retail Rate. LABOR LABOR RATE: Your authorized Labor Rate must be filed with Safe-Guard. Written notice on dealership letterhead is required in advance of any change. Fax this notice to the attention of the Claims Director at 678-892-3232. Once approved, the new rate will be active in the system within 48 hours of notification and will apply to new claims going forward. LABOR TIME: Your dealership agreed to use a specific Labor Time Guide (LTG) for all claims. Time allowances may not exceed that of the approved LTG. Contact the Claims Department if you do not know your approved LTG. REVISED LABOR TIME: Manufacturers occasionally revise labor operations through Technical Service Bulletins. It is the policy of the Claims Department to utilize these recommendations as they become available. Any labor time adjustments described in Technical Service Bulletins will be the basis for authorization where applicable. STRAIGHT TIME: Some covered repairs are not reflected in Labor Time Guides. Such straight time repairs require prior authorization and proof of the technician s actual clock time. Safe-Guard may also request proof of the technicians qualifications for the type of repair being performed. PARTS MANUFACTURER-SOURCED PARTS: Dealerships agree to use a specific formula for pricing parts. Part prices may not exceed the agreed-upon limit. Contact the Claims Department if you do not know your approved parts pricing formula. LOCALLY-SOURCED PARTS: We require a copy of the vendor s invoice showing what was paid for the part. SAFE-GUARD-SUPPLIED PARTS: Based on contracts that Safe-Guard has with part vendors and the desire to adjudicate claims in the most cost effective manner possible, Safe-Guard may choose to supply parts when the price results in significant savings. These parts will be shipped to your dealership at Safe-Guard s cost. DEDUCTIBLE The Deductible stated on the customer s Service Contract will be subtracted from the reimbursement for covered parts and labor. Deductibles do not apply to Rental or Towing Charges or Emergency Travel Expense Reimbursement. When there is a covered component that is repaired under the Manufacturer s Warranty, Safe-Guard will pay the difference between the manufacturer s deductible and the Service Contract s deductible, upon receipt of a copy of the completed Warranty Repair Order. RENTAL Refer to Service Contract for complete details regarding rental coverage. To qualify for rental reimbursement, the vehicle must be inoperable or unsafe to drive and kept in the shop overnight due to a covered repair. Safe-Guard requires a signed copy of a rental contract from a licensed rental agency. The contract must be completed in its entirety, be signed by the customer, and indicate the date the rental begins and ends. 16
Extended Rental is available for qualifying parts delays. Refer to the Service Contract for details. To qualify for extended rental, you must provide a parts backorder verification within the first five days of the rental period. TOWING & ROADSIDE ASSISTANCE Refer to customer s Service Contract for towing coverage and appropriate limits. Benefits are only applicable to repairs covered as defined in the customer s Service Contract. Towing limits apply per disablement. Notify the adjuster of any towing or roadside assistance during the call for authorization. Documentation must be provided showing the date of the towing or roadside assistance. Benefits do not apply when towing or roadside assistance is paid for under the manufacturer s warranty. EMERGENCY TRAVEL EXPENSE REIMBURSEMENT Local commercial lodging, meals and transportation expenses are covered up to $1,000 per occurrence (a maximum of $200 per day for up to 5 days from the date of breakdown) when: The breakdown occurs 100 miles or more from the customer s home; The breakdown renders the covered vehicle inoperable or unsafe to drive; and The covered vehicle is required to be held overnight by a repair facility for covered repairs. SALES TAX Sales tax will be reimbursed when required by state law. Safe-Guard does not reimburse for sales tax where no tax is due. If the state taxes the Service Contract at time of purchase, repairs covered by the Service Contract may not be subject to sales tax. Safe-Guard recommends that the following information be recorded on the Repair Order (if required by state law): The last 7 digits of the Vehicle Identification Number The Service Contract Purchase Date The Issuing Company s Name (i.e., Safe-Guard Products International, LLC) The Amount to be Reimbursed SHOP SUPPLIES Safe-Guard does not reimburse shop supplies. ENVIRONMENTAL FEES Safe-Guard does not reimburse environmental fees. 17
SECTION 8. SUBMITTING CLAIMS DOCUMENTATION REQUIRED The following documents are necessary to enable Safe-Guard to process a claim reimbursement request: A legible copy or original Repair Order containing: The customer s concern, the cause and the correction Part description, number and price Labor time/rate and Operation Code Customer s Signature Last 7 digits of the Vehicle Identification Number Year, make, and model of the covered vehicle Claim tracking number The net claim amount due after any applicable deductible Odometer reading at the time of repair A copy of the invoice that shows the dealership s cost for locally-sourced part(s) Any sublet repair bill(s) if applicable A legible copy of the Rental Contract signed by the customer (if applicable) A legible copy of the towing receipt (if applicable) Claims can be sent via facsimile. Faxing expedites payment as the claim documents are input directly into Safe- Guard s system. See Claim Faxing Instructions below. CLAIM MAILING INSTRUCTIONS Claims can be mailed to: Safe-Guard Products International, LLC Two Concourse Parkway, Suite 500 Atlanta, GA 30328 CLAIM FAXING INSTRUCTIONS Claims can be faxed to: 678-892-3232 vscpaymentfax@sgintl.com A Bar Code Fax Cover Sheet is required for each individual claim. Safe-Guard will forward a Bar Code Cover Page when the claim has been approved. If the claim documents are illegible, the claim will not be processed. Legible documents will be requested and must be received before the claim can be processed. 18
An original copy of the Bar Code Cover Page (to be used as a fax cover sheet) can be printed with a laserjet or an ink-jet printer from the e-mail transmittal. Note: Impact printers CANNOT be used. Bar Code Cover Pages should be clean and sharp. Only use white paper. The bar codes on the sheet cannot be altered or obstructed in any way. Copies of the fax cover sheet can be made ONLY from an original print do not make copies of copies. If your fax machine is equipped with a Fine or Enhance setting, select this option before transmitting the fax. The claim can consist of multiple documents. Multiple documents for a claim must be faxed together with the bar code fax cover sheet on top. All of the required fields on the fax cover sheet MUST be filled out. Multiple claims can be submitted per fax. Each set of documents MUST have its own fax cover sheet as the first page of the set. All of the required fields on the fax cover sheets MUST be filled out for each claim. BAR CODE FAX COVER SHEET SAMPLE Claim Administration Department Two Concourse Parkway Suite 500 Atlanta, GA 30328 800-742-7896 Fax: 678-553-1355 10/29/2010 ATTN: CASHIER/ SERVICE ADVISOR FAX: XXX-XXX-XXXX RE: COVER SHEET FOR REIMBURSEMENT OF VSC CLAIM INVOICE #: DEALER: Claim #: Authorized Amounts for this Claim: Parts: Labor: Total: Dear Sir or Madam: For claim reimbursement, please submit the following documents in order to receive payment: The final invoice signed by the customer If there is sublet associated with this claim, please also submit the sublet bill If there is a tow bill associated with this claim, please also submit the tow bill This cover sheet must be included in order for reimbursement to be made If you have any questions regarding this matter, please feel free to contact us. (800) 742-7896 Sincerely, Claims Department Safe-Guard Products International, LLC Return Fax Numbers: 678-553-1355 Return Email Address: xxxxx@xxxxx.com 19
SECTION 9. PAYMENT OF CLAIMS DETERMINATION OF REIMBURSED PARTY Safe-Guard will determine at claim initiation whether the customer will be reimbursed for the claim or the repair facility will be reimbursed. If the customer returns to the selling dealer, the dealer will be reimbursed for the claim. If the customer goes to any other facility, Safe-Guard will offer to pay the repair facility with credit card or check. If the repair facility refuses payment from Safe-Guard, the customer will have to pay for the repairs, and Safe-Guard will reimburse the customer by check. PAYMENT PROCESSING Upon claim approval, a request is made for either check or credit card reimbursement. The turn-around time for a check is approximately 3 business days. The turn-around time for credit card reimbursement to a dealer is 24 hours or less. Please see additional information regarding the credit card payment method, also included in this manual. DISCREPANCY IN REIMBURSEMENT AMOUNT When the claim is initiated, Safe-Guard will verify the pricing for parts and labor. The agreed-upon prices are entered into Safe-Guard s system. When Safe-Guard receives the submitted invoice copy, those prices are compared. If there is a difference, Safe-Guard will process the claim reimbursement for the originally-approved amounts or the lower amount, if billed for less than the authorized amount. If work is completed before the claim is called in, there is a greater probability of a refund shortage, as prices should always be verified before any service begins. CREDIT CARD REIMBURSEMENT Safe-Guard offers the availability of credit card payments for claim reimbursement. Below are several key points regarding the process: 1. The secured Visa credit card numbers are similar to gift cards in that they are pre-loaded with the authorized claim amount. Once the Safe-Guard claim adjuster submits a claim for payment, and the claim is approved, Safe-Guard will request a credit card number loaded with the approved amount. Safe-Guard will then notify the dealership via phone, fax or e-mail with the credit card information, so that the claim may be paid immediately. 2. Each card number is good for one use only. Please be sure to enter the exact amount of claim reimbursement loaded on the credit card. If a mistake should occur, the dealer needs to contact Safe-Guard for a new card number loaded with the remaining amount. 3. For security reasons, credit card payments are not available for all claim amounts. Those claims will be paid via check. 4. The turn-around time for payment via credit card is 24 hours or less once all necessary documents are received by the Claims Department. Missing information or documents will delay this process. 5. When a claim is called in from a dealer, it is imperative that Safe-Guard be provided with the contact names and numbers for those individuals who will be processing the credit card payment inside the dealership. These are the individuals that will be contacted once the credit card number is ready for use. PAYMENT TO CLIENT REPAIR FACILITY Once all claim documents are received, reviewed and approved, the claim will be completed and a payment request will be made. 20